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There must be some misunderstanding. Let me give some hints,
First, remove the cartridges, unplug the power cable and the usb cable. Now power on your printer and leave it for few minutes.
Again, plug/reinsert them and power on (make sure you connect the usb to the printer as well as on the computer usb port).
If you get a small window "Found New Hardware Wizard" then insert you cd into the cd/dvd rom. Select "No Not this Time only" from the "Found New Hardware" wizard and click "next" then select "Install from a list or specific location" click "Next", check the "include this location in the search" click "browse" and manually search the driver to you Cd rom directory. After you locate the driver, click "Ok" then "next", the wizard will search and install the driver and click "finish" when it's done.
Do let me know if this helps or not.

Installing
HP 4355 on windows 7 is pretty easy ,kindly insert the
PROGRAM CD in the CD ROM drive and auto run the aplication CD without connecting the printer,in few minutes of installation progress you will get alert to connect the printer and then printer is configured by OS
Above is the normal procedure,very minute but technical tip is to connect the printer first and insert program CD for printer in the rom drive and open device manager and scan for hardware changes ,you will get alert on task bar that new hardware is found and new window for device installation ,click continue with browsing file path for CD in drive and continue installation ,in nex few minutes your device shall be ready to use.
Incase there is problem with installation with CD kindly go to manufacturers website and download windows 7 compatible drivers.
For Safe Computing Knidly keep your antivirus updated and firewall is on.
Thanks And Regards
Kindly rate this solution

Ensure that your cable is connected
correctly. Remove the USB cable, look at the end of the cable, and then
match it to the pattern on the USB port. Make sure that it is not
upside down. Insert one end of the USB cable completely into the USB
port on the HP device and the other end into the back of the computer.

Check that the peripheral is turned on. Peripherals will not be recognized if the power is off.

Ensure that your USB cable is no more than 15 feet or 5 meters in length.

Check that the USB port is enabled. Some computers ship with disabled USB ports.

III. INSTALLATION INSTRUCTIONS
When operating in a Windows environment,
the CD-ROM setup or installation software detects the version of the
operating system that you are running. The software is installed in the
language that you have selected. For example, if you are running an
English version of Windows and have the language preference set to
Spanish, the installation utility will install the Spanish version of
the printing software for the appropriate Windows version.
INSTALLATION OPTIONS
Two methods are available for installing printer drivers and software components for the printer.

HP Color LaserJet 2605 series printer documentation.
A list of documentation, which includes information about product
operation, troubleshooting, warranty and specifications, supplies, and
support.

HP Solution Center
. Use HP Solution Center to gain access to product-specific software
and on-screen help. By using HP Solution Center, you can access the HP
Shopping Web site and update your HP software. If you have the HP Color
LaserJet 2605dtn, you can also transfer images from a photo memory
card. To start HP Solution Center, click Start, Programs, choose the HP
program group, and then click HP Solution Center.

When the Add New Hardware Wizard appears, click Next to install the USB Printing Support.

In the following dialog, select option Search for the best driver for your device, and click Next.

Make sure the HP Color LaserJet 2605
series CD-ROM is in the CD_ROM drive, select Specify a location, browse
to your CD_ROM drive, and select the Drivers folder, then either
Win98_Me( for Windows 98 and Windows Me) or Win2000_XP (for Windows
Server 2003). For example, CD ROM drive:\Drivers\Operating
System\Language. Choose OK, and then click Next.

For Windows 98 SE, in the USB
Printing Support dialog, you should see the path and file name. Click
Next. For Windows Me and 2003 Server, this step may not apply.

Once the files are copied, click Finish.

Steps 4-9 will repeat to install the
printer driver. File names will change. At step 9, you have the option
to rename the printer. Click Finish. After files have installed, click
Finish to close the dialog.

Good day Sir, That is common macintosh problem. There is described "driver not installed" at product List Window after you click Add and select USB. I suggest Reintall the software and make sure that you are using a high-quality cable.

Create a new folder on your desktop and name it newhpdrivers(substitute your manufacturer in new name).Un-intall printer and printer software completely.Go to manufacturers website and navigate to their drivers/downloads or support menu.Select your model, choose the relevant software and download to the new folder you created on your desktop.Power down your computer.Reconnect the printer to the computer and turn printer on.Windows will detect new hardware and ask if you have the manufacturers install cd or a location to check for install files.Direct the wizard to your new software, follow the rest of the setup instructions and your done

Assuming that you have a Canon PIXMA MP530 multi purpose printer, to get hold of the driver/installer, pls click here. New window will show several guide files and "No firmware updates are available for this product." Nonetheless Select OS and click on your Operating System. Page will refresh with drivers, file name mp530vst110ej.exe. You must have Java installed and enable in your browser for this to work. Download and save in your PC. Click to open and install. Follow on screen instructions.

Hope this be of some help/idea. Pls post back how things turned up or should you need additional information.

Issue
After installing the all-in-one and restarting the computer, the following Generic Host Process for Win32 Services error message displays:
Windows has shut down a process for Win32 services: Data Execution Prevention - Microsoft Windows To help protect your computer, Windows has closed this program.
Solutions
The following solutions should be tried in the order they are presented. If the first solution does not correct the issue, proceed to the next solution; if that solution does not correct the issue, proceed to the last solution.
Solution one
Uninstall and then reinstall the software using the following procedure:

Uninstall the software by inserting the software CD that came with unit into the CD-ROM drive on the computer.
NOTE:
If the startup screen does not appear, double-click the My Computer icon, then double-click the CD-ROM icon where the all-in-one disc is inserted. Choose the Uninstall option. If the Uninstall option does not display, the software is not completely installed. Proceed to step 2.

Install the software by inserting the software CD that came with unit into the CD-ROM drive on the computer.
NOTE:
If the startup screen does not appear, double-click the My Computer icon, and then double-click the CD-ROM icon, where the all-in-one disc is inserted. Choose the Install option.

Run the Software Update from the HP Director and apply all patches.

Solution two

Uninstall the all-in-one software using the CD that came with the unit, by following the steps in Solution one above.

After the software is uninstalled, restart the computer.

Install the all-in-one software by following the steps in Solution 1 above. After installation is complete, verify that the unit works correctly.

Change the Windows Image Acquisition (WIA) service from Automatic to Manual by performing the following steps: